The Federation of Migros Cooperatives and Digitec Galaxus AG have finalised their growth plans for Galaxus in Germany and are starting the next phase. The next major project is a new logistics centre in Krefeld. A necessary step, as business in Germany is booming and the existing site is on the verge of being outgrown.
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Switzerland’s largest retailer Migros is further venturing into the German market with its online department store Galaxus: «The shop’s growth in the last three years, positive feedback from customers in Germany and Digitec Galaxus’s concept for the next expansion phase of Galaxus Deutschland have convinced us,» says Fabrice Zumbrunnen, President of the Directorate-General of the Federation of Migros Cooperatives. «This means we’re holding on to our ambitious growth strategy and are now ready to intensify our joint activities in Germany.»
The next major step in Galaxus's growth plan is to move into a new warehouse in Krefeld, North Rhine-Westphalia. «Our current logistics centre spans a surface of 5,000 square metres, but is still bursting at the seams,» says Florian Teuteberg, CEO of Digitec Galaxus AG and Managing Director of Galaxus Deutschland GmbH. Talks to rent an additional warehouse are currently underway. It should provide around 20,000 square metres of additional floor surface. The move is planned for next year. «Our goal is to become even more involved in German online retailing. We’ll be bold about trying out new approaches in marketing, too. This will hopefully attract new customers and make existing customers come back.» Since its launch in late 2018, Galaxus has acquired over 500,000 online shoppers in Germany. The logistics site in Krefeld grew fivefold between early 2020 and early 2021: five times more employees, five times more products.
Fabrice Zumbrunnen
Customer service will also be expanded for Galaxus Deutschland customers. The plan is to double the size of the existing team in the medium run. The growing team manages the German client base, but also takes on tasks for the two sister shops in Switzerland, digitec.ch and galaxus.ch. «We’ll continue to interlink locations, departments and teams within and across national borders,» Teuteberg announces. «Our goal remains the same. We want to join the top 5 online shops in Germany.»
«Galaxus is more than an online shop. It’s a shopping community and a consumer magazine,» Florian adds. «The 25 editors on our writing team test and independently rate products. And they’re brutally honest about what they think. What’s more, they strive to keep our customers up to date about the latest trends as well provide them with hacks and tips. This strategy has been a success story in Switzerland. We’re now realising that Germany also craves honest e-commerce – warts and all. It’s a gap we can fill.» Galaxus Deutschland kicked off in late 2018 with a focus on consumer electronics. To date, around 500,000 parcels containing products from the categories «IT + Multimedia», «Office», «Home + Kitchen», «Toys», «DIY + Garden», «Health + Beauty» as well as «Love + Play» have left the warehouse. And a growing proportion of these parcels are reaching letterboxes and doorsteps without leaving a carbon footprint. The Galaxus community is offsetting carbon emissions for an impressive one in ten orders. This is done by making a voluntary contribution. As a result, customers (in Germany and Switzerland) have already put more than 1.3 million euros towards climate protection projects since summer 2020.
